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To: NOW who wrote (114590)7/26/2001 3:47:13 PM
From: pater tenebrarum  Respond to of 436258
 
only if compared to the mania numbers of last year...the Rydex ratio at 0.25 used to be a strong sell signal in the past. as i've pointed out before, in '98 the ratio raced to 2.0 - that made for a credible fear bottom. nothing even remotely similar has been seen thus far.
also, on every little rally you see the options players jump into calls in droves and the Rydex ratio tends to contract real fast too...combine that with the II bear percentage, the lowest mufu cash levels in months (4.8%)and institutional and WS equity allocations (firmly entrenched at ATH's) and the conclusion is these ramp attempts can't go very far.
in '99/'00 a 30 billion weekly injection would have produced a HUGE run...not this tepid up/down/up going nowhere actually.
once the injections stop, it's adios again...and if they don't stop, it's hello Weimar...